Tuesday, 6 March 2012

IMPORTANCE OF HAVING TWO UNITS

IT IS IMPORTANT TO ANALYZE  DUAL TIME FRAME CHARTS AND IT IS ALSO IMPORTANT TO HAVE TWO UNITS.  WHY?  REFERRING TO THE CIHLDG CHARTS BELOW, IF WE ENTERED ON 24TH FEBRAURY WHEN WE FELT THAT CIHLDG HAD FOUND SUPPORT, TODAY WE WOULD HAVE SOLD OUR FIRST UNIT TO LOCK IN PROFIT AND LET THE SECOND UNIT RIDE THE TREND, IF ANY.  NOBODY CAN BE SURE THAT THE UPTREND WILL CONTINUE SO TO MAKE SURE THAT THE PROFIT ON THIS TRADE WILL NOT TURN INTO A LOSS, IT IS BETTER TO SELL PART OF OUR HOLDING.  IF THE TREND CONTINUE WE CAN STILL PROFIT FROM THE ADVANCE IN PRICE BECAUSE WE STILL HAVE ONE UNIT LEFT. IF THE STOCK REVERSES (DOWN) TOMORROW, WE CAN STILL EXIT WITH SOME PROFIT.


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